Czech government to announce measures to tackle soaring fuel prices Monday

The Czech government will announce measures aimed at bringing down soaring fuel prices on Monday, as diesel approaches CZK 50 per liter and petrol reaches its highest level in more than four years.

Industry and Trade Minister Karel Havlíček said Sunday that the cabinet has already prepared a package of measures but declined to reveal details ahead of Monday's government meeting.

"We have measures prepared, and we will present them after the government meeting on Monday," Havlíček told CNN Prima News.

The announcement comes after several neighboring European countries began taking action against rising fuel costs, which have been driven by escalating conflict in the Middle East and pressure on refinery capacity.

A liter of Natural 95 petrol cost an average CZK 45.55 on Thursday, according to CCS data, while diesel averaged CZK 49.13. Petrol is now at its highest price since summer 2022, while diesel has not been this expensive since March 2022.

Compared with a year ago, motorists are paying roughly CZK 10 more per liter for petrol and around CZK 15 more for diesel.

Current diesel prices are also closing in on the record of CZK 49.57 per liter recorded in March 2022. The record for petrol stands at CZK 47.97, reached in June of that year.

Havlíček said the government had previously indicated it would respond if neighboring countries began intervening in their fuel markets.

Germany's governing coalition agreed in principle Friday on measures including lower taxes on petrol and diesel and price caps, according to DPA. Hungary, Croatia and Slovenia have also recently introduced measures to control fuel costs.

The Czech government already regulated fuel prices earlier this year, with measures in place from April until mid-July.

The Finance Ministry capped retailers' margins and set maximum retail fuel prices on a daily basis, while the excise tax on diesel was also temporarily reduced.

Finance Minister Alena Schillerová previously said the diesel tax reduction cost the state budget around CZK 1 billion in lost revenue each month.

Analysts cited by ČTK have favored targeted interventions such as reducing excise duties and monitoring retailers' margins. Some have warned that a return to the previous price-cap model could have unintended effects if rapidly rising wholesale prices are immediately reflected in the government-set ceiling.

Motorists should learn the government's chosen approach after Monday's cabinet meeting.